1232 ET - Bank of Canada Gov. Tiff Macklem says the economy is exhibiting "some resilience to tariffs," and the likelihood of a worst-case scenario stemming from U.S. trade policy has diminished. BOC kept its main rate unchanged at 2.75%, noting firmer-than-expected inflation and an economy that has softened but has not sharply weakened. Macklem says household consumption did slow in 1Q but continues to grow even though gauges of consumer confidence have dropped steeply. Macklem adds that business investment was "a bit stronger" than anticipated in 1Q. The stronger-than-expected economic performance, coupled with accelerating core inflation, provides BOC to hold off on further rate cuts despite distress in the labor market. (paul.vieira@wsj.com; @paulvieira)
(END) Dow Jones Newswires
June 04, 2025 12:32 ET (16:32 GMT)
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